Investors are wondering if Apple's stock has been punished enough, as the tech company prepares to report earnings on Tuesday. Dan Gallagher discusses on digits. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... Apple's stock taking the sting of the past few months has all the bad news been priced in ... welcome to Digits I'm Simon console and joining us to discuss that with a bang Gallagher of MarketWatch ... Sam thanks for joining us ... good beer sign and so was applies when you have ... what exactly would the bad news they coming from Apple ... well I do analysts Erdy Malina pretty sharp drop off in the I phone sales from the December quarter as me and watch the I phone five quarters ... aam also I the mix of iPads rehab more sales of the I pad Meanie less of a larger ones ... on the public and press margins down ... on in just kind of a general you know lack of enthusiasm around ... of both the stock of the products you know one difference with Apple this year is that there's a lot more competitive products out on the market ... said and ... compared the years pass so that's there's a few multiple factors weigh in on this that the idea that this might not be a very impressive quarter from a ... honk and now we've also got a son of a factor happening here which is very important Home Wall Street least and that's the ... declining earnings estimates of analysts slashing them back tells about that ... well underway is kind of been erased al you know what analysts to one egg Bekah laughed ... a aam you know with really high estimates of the numbers come in low so we seen ... a lot about numbers came down right after their last report in January that even over the last ... time since beginning of April actually there's been alot investment streamed down both for March ... and for the June quarter the June quarter's kind of a wild card because Apple does give a forecast ... of for the quarter ahead when they report their results ... honorees expecting that that particular forecasts for this June period to not be impressive because of the canal but I believe they have a new products coming out ... aam but the question is are those estimates go to come down ... to match the reality of the forecasts in the third night ... I then you might still see downside for stock which is Ari claps of white more than forty percent over the last few months ... now what one other things with with all of Wall Street as you said is is it's those expectations that when the man says so ... if estimates have come down enough is it possible that they could in fact exceed them ... and in the stock pulled back up ... it's certainly possible Turley Arditi guests will the stock is going to do especially small tiles Apple's become ... so if they if their forecast is not as bad as you wear or assets currently are with it for the June period ... I you might see some awesome stock reaction ... some people I talk to Bill cautioned that ... a couple of items ... is that Apple is really tended to move in the past on private lives ... aam and we don't have a lot of that product buzz because the re designed pre much their entire product line in the later part of two thousand twelve ... so what's gonna come out this year is not expected to be anything super revolutionary ... unless there are some surprise like a new TV or something ... so there might not be the counterpart was coming for a few months and without that unless the recent like raising the dividend you might not have a lot of positive catalysts to keep that stock ... ongoing a ... contented dividends is something that they pay half now ... aam traditionally the company has an app that what you think the chances that they do actually have a bigger dividend ... um I think the chances of their considering area returning more cash era raise dividend or some other way ... are pretty dead I don't think that I don't think there's a big chance again outset with the earnings report tomorrow ... I it's certainly possible there's a lot of press in on a two zero lead on that one dividend last year ... ALM so it's really kind of guesswork but ... you know the people I've talked to seem to think it's more likely that they'll save that for its own announcement crafts a later down the road may or something ... ALM so will have to see but there does seem to be a strong expectation the reading your more about that more ... often ... very exciting will be looking out not smart thank you very much bang Gallagher ... I'm Simon Constable and that was digits